WTI Crude Oil (Intraday): Bullish Bias Above $32.40

July WTI Crude Oil futures rallied over 80% from the April's close price......

Energy 3

July WTI Crude Oil futures rallied over 80% from the April's close price at $18.84/bbl to $33.92/bbl as of the close price on May 21 due to global output cut.

On Wednesday, the U.S. Energy Information Administration (EIA) released a weekly report for May 15, which stated that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 5.0M barrels from the previous week to 526.5M barrels. In the below chart, the increase of U.S. crude oil inventories peaked in April and returned the status of withdraw inventories.

Source: Trading Economic

Meanwhile, U.S. crude oil production fell to 11.5M barrels per day last week from 11.6M barrels per day in the prior period. IHS Markit projected that U.S. Crude Oil production would drop 1.75M barrels per day in June.

On the 1 hour chart, July Crude Oil futures validated a bullish breakout of the symmetric triangle. Currently, the prices posted a pullback from $34.65, but it is still holding above the 38.2% retracement level. In addition, the prices are still supported by a rising 50-period moving average, helping to maintain the bullish outlook.

Therefore, bullish readers could set the support level at $32.40 (61.8% retracement level of current rebound) and resistance levels at $34.65 (the previous top) and $36.00 (138.2% expansion of current rebound). 

In an alternative scenario, a clear break below $36.40 would erase the bullish outlook and call for a return to $31.10 (the low of May 19)

Source: GAIN Capital, TradingView

More from Oil


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.